Weekend Review and Watchlist

Overview

Equities moved to new all time highs this week, with the NASDAQ completing a 10-day winning streak, its first since Feb 2015.

Breadth has moved higher with it, on both 'all issues' and 'operating companies only' measures. Equalweight versions of indices and sectors also show the same strength as the cap-weighted. The persistent theme that leadership is thin, or that only a handful of names are responsible for the market's gains, is simply a myth.

The S&P, NASDAQ, NYSE Composite, Russell 2000, and Midcaps, all finished at all time highs on a weekly close basis. The Dow, and Microcaps eased back slightly, while the Transports Index has retreated to test its 10-wk MA.

Here's the S&P on a weekly and monthly. The month's not over yet, but so far another higher high and higher low are in place.



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Sector Analysis

Looking at the S&P Sector SPDRs, I have Healthcare and Technology leading the way.



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They're followed by Materials, Consumer Discretionary, Financials, Real Estate, Industrials, and Utilities, which are all above their 20, 50, and 200-day MAs. That leaves only Staples, which continues to recover well but remains below its 50-day, and Energy, which moved back below its 20 EMA, but looks well-positioned for some follow-through to the upside, with a higher low in place.

Away from the Sector SPDRs, the resumption higher in Biotech, shown here via $IBB and $XBI, looks noteworthy, and I also loved the follow-through to last week's breakout in $BOTZ, the Robotics and Artificial Intelligence ETF.

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Alpha Capture Portfolio

This week our model portfolio climbed +1.3% vs +0.5% for the S&P. It's now +2.0% YTD, well below the S&P at +10.4% YTD.

Heading into next week it has 10 positions, with total open risk of 5.2%, and around 6% in cash.

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Watchlist

This week our list is dominated by healthcare/biotech names, along with a decent showing by technology and consumer discretionary.

Here's a sample from the full list of 25 names:-

$AIG

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$GD

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$RGLD

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$JAZZ

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$QURE

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$REGN

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$FEYE

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$FISV

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Posted to Alpha Capture on Jul 22, 2017 — 12:07 AM

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